NAIA privatization

The proposed privatization of the Ninoy Aquino International Airport (NAIA) is proceeding with help from the Asian Development Bank (ADB) which is advising the Department of Transportation (DOTr) how best to turn over the country’s main gateway to a private concessionaire.

ADB was contracted by DOTr last February to give technical advice on the project. They have since conducted a so-called market-sounding exercise to solicit inputs from various stakeholders.

The contentious issue here are the thousands of airport concessionaires whose rents are the source of dubious transactions, benefitting unnamed officials of the Manila International Airport Authority (MIAA) which is why the MIAA general manager post is most sought after.

ADB is drafting the terms of reference that will guide how to select the winning concessionaire.

MIAA will govern the chosen NAIA private operator, much like the arrangement with Clark and Cebu international airports.

These are examples of successful public-private partnerships in running an airport.

Mactan-Cebu International Airport is operated by the GMR-Megawide consortium. Clark International Airport is run by Luzon International Premier Airport Development Corp.

At least nine other regional airports all over the country are for privatization. But privatizing NAIA is the biggest and most complex.

Already, a consortium of conglomerates submitted an unsolicited proposal to manage NAIA. DOTr has officially received the proposal but not studied it yet. DOTr is waiting for ADB’s terms of reference that will guide DOTr if the proposal is viable.

The problem with unsolicited proposals is the unsubstantiated claim they are capable to doing the project. This consortium may have the financial muscle but not the technical expertise. 

DOTr Secretary Jaime J. Bautista went to London – not as part of the recent BBM state visit – to study Gatwick Airport, London’s second biggest airport, next to Heathrow.

Gatwick has one runway but is run efficiently. Gatwick can operate more take-offs and landings per minute than NAIA which has two runways.

The answer is technology. That is what the transport secretary wants to adopt at NAIA.

ADB cannot offer technology. It’s a bank. 

We should invite Gatwick officials to visit NAIA and offer advice. But that does not solve the problems of NAIA.

Corruption holds back NAIA operations. Corruption is the root of the power outages, of long lines, of poor facilities.

Government red tape prevents NAIA from upgrading those facilities – repair of air bridges, ground facilities, water treatment system, air navigation systems, etc.

At least, MIAA is bound to remain a regulator once NAIA is privatized, no longer an airport operator.

Many issues will have to be resolved in NAIA privatization. ADB should provide the answers.

The public should eagerly anticipate this exercise because we have one of the world’s worst airports.